The president of Mexico’s Senate said the upper house probably will approve “very quickly” the revenue portion of the 2013 budget presented yesterday by President Enrique Pena Nieto’s government, Milenio reported.
Mexico’s economy has room to grow before reaching its capacity and government subsidies for gasoline insulate the country from rising oil prices to keep inflation in check, said Finance Minister Ernesto Cordero .
Mexican Finance Minister Ernesto Cordero said the country’s recovery is “solid” even as he warned the U.S. Federal Reserve’s decision to pump $600 billion into its economy may be “bad news” for emerging markets.
Mexico doesn’t need to use capital controls to offset the effects of investment inflows because the country’s currency is undervalued when compared with its pre- crisis level, Finance Minister Ernesto Cordero said.
Mexican Finance Minister Ernesto Cordero said policy makers may raise the size of monthly dollar option auctions and said officials won’t intervene directly in the peso market no matter how much the currency advances.
Mexican Finance Minister Ernesto Cordero said the nation’s reserves haven’t lost value due to market volatility and that its credit rating won’t be affected by a downgrade of the U.S. by Standard & Poor’s.